Ripple can connect together businesses who each do one thing well. In that way, it's easier for those businesses to be compliant. If you want to buy BTC with GBP, here's how it works (... snipped ...)
Thanks ribuck (and matthewh3), your explanation of how Ripple can facilitate a banking system funds for bitcoin trade is very helpful.
I had contemplated a cash-less exchange, but I hadn't contemplated the possibility of a cash-less and bitcoin-less exchange! It is obvious though once you start breaking down what an exchange really is.
I do hope Ripple (or something like it) takes off, though I wonder if the concept will prove too abstract.
One possible criticism is that Ripple simplifies problems (which is good), but it also multiplies them; instead of my original problem of finding one trustworthy UK bitcoin exchange, with Ripple I now have three problems:
- How to find a trustworthy gbp -> ripple-gbp agent?
- How to find a trustworthy ripple-gbp -> ripple-btc agent?
- How to find a trustworthy ripple-btc -> btc agent?
Bitstamp is all three that's what the trusted gateways are for and they will be relied upon heavily until Ripple is about as big as PayPal AFAIK and you can call in cash/BTC/whatever debts from trusted peers or trusted local shops for example as your gateways.